Published on 6/2/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.82 million Stars due 2016 linked to S&P 500 index
By Toni Weeks
San Luis Obispo, Calif., June 2 – HSBC USA Inc. priced $12.82 million of 0% Strategic Accelerated Redemption Securities due June 6, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above its initial level on any observation date, the notes will be called at par of $10 plus an annualized call premium of 7.3%. The call observation dates are Nov. 20, Feb. 19, 2016 and May 27, 2016.
If the notes are not called, investors will be fully exposed to losses.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500
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Amount: | $12,815,880
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Maturity: | June 6, 2016
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus index return with full exposure to losses
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Call: | At par plus 7.3% per year if index closes at or above initial level on Nov. 20, Feb. 19, 2016 or May 27, 2016
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Initial index level: | 2,120.79
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Pricing date: | May 28
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Settlement date: | June 4
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Underwriter: | BofA Merrill Lynch
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Fees: | 1.25%
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Cusip: | 40434G460
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